You're right that the formulation is not optimal.
I think he meant to say:
For each $\alpha\in A$, let $X_{\alpha}$ be discrete topological space with more than one point. Then $\prod_{\alpha\in A}X_{\alpha}$(under product topology) will be a discrete space if and only if A is finite.
Or
For each $\alpha\in A$, let $X_{\alpha}$ be discrete topological space. Then $\prod_{\alpha\in A}X_{\alpha}$(under product topology) will be a discrete space if and only if $\{\alpha \in A: |X_\alpha| > 1\}$ is finite.
Or as an escape clause: maybe Willard defines somewhere that a discrete space is by definition one that has at least 2 points, or some such trick. I don't have it at hand now.
In simple terms: he wants to state that "all" infinite products of discrete spaces are no longer discrete any more. But he does need to add the clause that the spaces are not singletons to avoid trivialities.